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GBP/USD continuing to the 1.6180 resistance in fashion

FXStreet (Guatemala) - GBP/USD is trading at 1.6163, up 0.27% on the day, having posted a daily high at 1.6184 and low at 1.6088.

GBP/USD continues on to impress in fashion, now with an advancement up to challenge the 1.6180 resistance area. Positions are being put back on into sterling despite the disinflationary environment and wages outlook in the UK’s labour market. US data has been disappointing in some areas this week, with first the US pending home sales growing just 0.3% in September versus the 0.5% gain expected. And then today, terrible durable goods -1.3% vs 0.5 consensus. However, there was a vast improvement in consumer confidence in respect of what had been expected 94.5 vs 87.0, but which only left the pair a little worse off.

Karen Jones, chief analyst at Comemzbank explained yesterday that immediate resistance is offered by the 23.6% retracement at 1.6184 and she added that if Sterling is capped here then the negative bias remains. “We continue to target the 1.5855 November 2013 low”.

GBP/USD noteworthy near term levels

With spot trading at 1.6164, we can see next resistance ahead at 1.6184 (Daily High), 1.6185 (Weekly Classic R1 / Daily Classic R2), 1.6222 (Daily Classic R3) and 1.6241. Support below can be found at 1.6153 (Daily Classic R1), 1.6149, 1.6123 (Hourly 20 EMA) and 1.6120 (Daily 20 SMA).

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